Predictions through 3/1/08

By on March 1, 2008

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Divergent opinions on commodities are flowing from the mouths of the pundits these days. Most views are extremely bullish after an incredible run-up making commodities the bubble du jour.
Gary Shilling believes the housing industry depression will spill over into the general economy and weaken all commodities, but especially copper, which is used a great deal in new housing. Ben Stein admits that, over the short term commodities may go down, but he is buying them via DBC with his own money anticipating strong growth over the next decade. Jonathan Hoenig believes that base metals have taken a back seat to the precious type and have a lot of catching up to do. He recommends the thinly traded nickel exchange traded notes. In exact contrast to Mr. Shilling, Charles Payne believes worldwide economic growth will continue and Southern Copper is a great way to participate.

As Louis Rukeyser used to say, I can guarantee one of them will be wrong.

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